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S&D Euro MP Neena Gill achieved last night an important victory in the fight against climate change, reaching a deal with the EU Council on financial benchmarks that will encourage greater investment in the low-carbon economy.

Neena Gill, Labour MEP who led the negotiations for the European Parliament, said:

"The agreement reached with member states yesterday is hugely significant in the fight against climate change. Financial benchmarks are the cornerstone of global capital markets, with indexes alone helping to channel trillions of euros towards investment projects.

"Globally, we’re hurtling towards dangerous climate change, so sticking to the status quo on capital allocation based on current financial benchmarks is no longer good enough. With this legislation on low-carbon benchmarks we can ensure the financial services sector plays its part, directing capital flows towards much-needed sustainable investment and the jobs and industries of tomorrow.

Note to editors:

This new regulation creates two new types of benchmarks, an EU climate transition benchmark and a Paris Agreement-aligned benchmark.

Furthermore, by 31 December 2021, all benchmarks or families of benchmarks, except interest and currency rate benchmarks, should include in their benchmark statement an explanation of how their methodology converges towards the target of carbon emissions reduction and attains the goals of the Paris Agreement.

This legislation will now need to be approved by the European Parliament and by the Council of the EU for it to come into law.